A mortgage company contracts with a document preparation service that operates in a foreign country with weaker privacy laws. Under GLBA's Safeguards Rule, the mortgage company must:
Correct Answer
C) Ensure the foreign service provider meets equivalent safeguards through contractual requirements
Under GLBA's Safeguards Rule, financial institutions must ensure that service providers, regardless of location, implement appropriate safeguards to protect customer information. This is typically accomplished through contractual requirements that mandate adequate security measures, even if the provider operates under different local privacy laws.
Why This Is the Correct Answer
Under GLBA's Safeguards Rule, financial institutions must ensure that service providers, regardless of location, implement appropriate safeguards to protect customer information. This is typically accomplished through contractual requirements that mandate adequate security measures, even if the provider operates under different local privacy laws.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which information is NOT required to be included in an AfBA disclosure?
A lender quotes an APR of 4.25% on a mortgage loan, but the actual APR calculation results in 4.28%. Under TILA's APR accuracy tolerance, is this disclosure compliant?
Which of the following fees would NOT be included in the finance charge calculation under TILA?
For a purchase money mortgage with a loan amount of $400,000, which of the following represents the correct method for calculating the APR?
A servicer receives a borrower's written request for payoff information on Monday. The borrower needs the information for a refinance closing scheduled for the following Friday. When must the servicer provide an accurate payoff statement?
A lender provides a borrower with initial TILA disclosures showing an APR of 4.5%. Due to market changes, the final APR at closing is 4.625%. What disclosure requirement applies?
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A mortgage broker charges a borrower a $500 processing fee and receives a $2,000 yield spread premium from the lender. For TILA disclosure purposes, what amount should be included in the finance charge?
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Under HMDA, a covered lender must collect data on which type of loan origination?